Local Budget Law Questions

Question 1

The Local Budget Law NJSA 40A:4-3.1(a) requires any municipality deciding to convert to a State Fiscal Year from a Calendar Year perform the following:

Answer 1

-Apply to the LFB

Question 2

When converting to a State Fiscal Year calendar from a Calendar Year a municipality may do so by which of the following:

Answer 2

Ordinance

Question 3

All budgets shall be introduced, approved, amended and adopted by what vote and by which action of the governing body?

Answer 3

-By resolution passed by not less than a majority vote of the full membership

Question 4

NJSA 40A:4-5 sets the introduction dates for the municipal budget for both a Calendar Year and State Fiscal Year community. The statutory introduction dates are as follows

Answer 4

Calendar Year - Feb 10th

State Fiscal Year - August 10th

Question 5

A municipal governing body has introduced their town budget on Thursday, February 6th and will hold a public hearing on said budget on Thursday March 6th ( a non-leap year). The advertisement giving notice of public hearing shall not be published later than which date?

Answer 5

February 24th - 10 days prior

Question 6

Using the identical dates as presented in question number 5 above (Introduced 2/6; hearing 3/6; advertise 2/24). Would the minimum number of days required between approval and adoption by satisified?

Answer 6

Yes (28 days)

Question 7

According to NJSA 40A:4-9 concerning amendments to an introduced budget. An increase or decrease to any item of appropriation by more than 5% would require a public hearing of said amendment

Answer 7

False

Question 8

The amount to be raised by taxes for school purposes, required to be certified to the governing body of a municipality for inclusion in its budget, shall set forth in a separate section of the budget upon adoption and shall be added to the amount to be raised by taxes by which of the following

Answer 8

School Tax Rate

Question 9

The governing body may by resolution authorize temporary budget appropriations to provide for the period between beginning of the fiscal year and the adoption of the budget. The resolution shall be adopted within how many days of the beginning of the fiscal year

Answer 9

30 days

Question 10

Nothing in the Local Budget Law, specifically as stated in NJSA 40A:4-19, shall prevent or relieve the governing body from making appropriations during the last 10 days of the year preceding the beginning of the fiscal year for all capital improvement fund purposes.

Answer 10

False

Question 11

When emergency temporary appropriations are adopted after the introduction and approval of the budget and were not included in the budget as approved, the temporary emergency appropriation shall be included by amendment.

Answer 11

True

Question 12

Which of the following is known as, in the current section of accounts shall consist of the excess of quick assets such as cash, investments, state or other public aid receivable and deferred charges over legal and demand liabilities

Answer 12

Surplus

Question 13

Which of the following is known as; revenue amounts that may reasonably be expected to be realized in cash during fiscal year from know and regular sources, or from sources reasonably capable of anticipation?

Answer 13

Misc, Revenues Anticipated

Question 14

Miscellaneous revenues being anticipated in the municipal budget are regulated by NJSA 40A:4-26. This section of the statute limits anticipated revenues to the amount:

Answer 14

Actually realized in cash from the same source in the next preceding fiscal year

Question 15

Any municipal governing body has determined that a parcel of land is no longer required for public use and so concluded that said parcel be sold at auction. The parcel of land will generate sale proceeds that would benefit town property owners if anticipated in the municipal budget as a revenue. In order for the proceeds to be anticipated revenue in the budget the obligation to make payment to the municipality must be entered into:

Answer 15

Prior to budget adoption

Question 16

When a municipality has a sinking fund cash surplus, such surplus may, upon written application by the sinking fund commission and approval of the director, be used in whole or in part as which of the following according to NJSA 40A:4-28

Answer 16

An anticipated misc. revenue in current fund budget

Question 17

NJSA 40A:4-30 describes the amount to be raised by taxes by the amount required to be levied for taxation for support of the municipal budget. It is the difference between the total of all muni. budget appropriations, including chapter 6 school debt service, and such deferred charges and statutory expenditures for chapter 6 schools are required to be raised in the municipal budget, less anticipated revenues. True/False

Answer 17

True

Question 18

To the extent there is available surplus revenue collected by a municipality for supplying a utility service which is regulated by BPU an amount of this utility surplus may be transferred annually and included in the local muni budget. This amount of surplus to be utilized may not exceed what percentage of the annual costs of operation of the utility?

Answer 18

5%

Question 19

Dedicated revenues stated in the budget shall be classified according to their respective sources and shall be stated in a separate section of the budget, together with the appropriations to the purpose to which such dedicated revenues are applicable. The total of anticipated revenues must equal to the total of appropriations, This definition would describe:

Answer 19

Trust Fund acounts

Question 20

Which of the following would meet the standard to qualify as a dedicated revenue?

Answer 20

All of the above:

• Animal Control Fund
• Sinking Fund for Term Bonds
• A bequest
• Motor vehicle fines dedicated to road repairs

Question 21

An appropriation for “cash deficit of preceding year” shall be raised how?

Answer 21

-In full the immediate successive year of the deficit

Question 22

A capital budget adopted by the governing body authorizes an expenditure of public funds. True/False

Answer 22

True

Question 23

NJSA 40A:4-45.2a authorizes that amounts of revenues generated by an increase in its valuations based solely on applying the preceding year’s local purposes tax rate of municipality to the assessed value of new construction or improvements will result in which of the following:

Answer 23

-Increase in CAP base

Question 24

Which of the following groups of appropriations are exceptions to the budget “CAP”, or also know as outside “CAP” appropriations?

Answer 24

-Debt Service, capital expenditures, amounts expended to fund a free public library

Question 25

Unless emergency expenditures are eligible for bonding pursuant to the Local Bond Law, said expenditures shall be provided in full by the governing body as a deferred charge in the budget of the next succeeding fiscal year. True/Fals

Answer 25

True

Question 26

A resolution authorizing the adoption of an emergency appropriation shall be adopted by what vote of the municipal governing body?

Answer 26

2/3 vote of full membership